Treasure Coast Employment Outlook

Manufacturing are jobs returning to U.S., Treasure Coast?

The U.S. Department of Commerce is recognizing a trend: manufacturing jobs that typically went to China and other Pacific Rim countries have begun reversing. Firms such as General Motors, Kohler, Caterpillar, Apple, General Electric and others are ramping up operations back home. Manufacturing has been a welcome success industry in the great recession, adding more than 500,000 jobs the last three years.

This is good news for workers in America where more than 12 million people are employed in manufacturing jobs earning higher than average wages, including benefits. American workers produce almost $2 trillion, or more than 12 percent of the U.S. Gross Domestic Product (GDP). The U.S. maintains a lead as the world’s largest manufacturer at more than 18.2 percent of the total market. China is second at 17.6 percent. American manufacturing workers continue to be the most efficient and industrious due to technology, computer knowledge, robotics and streamlined processes.

These factors have created a competitive advantage for U.S.-based companies that will influence corporate decisions on investment distribution and acquisitions for decades ahead.

Economic drivers

Readily available, affordable and plentiful natural gas supplies, which translates to reasonably priced electricity for manufacturers as natural gas, drives a large percentage of power generation.

The talent pool of qualified workers in the U.S. is increasing and the wage gap with China has been decreasing over the last decade. Productivity gains in the U.S. and lower turnover rate also contribute to this movement. It is anticipated future generation manufacturing workers in the U.S. will be younger while workers in Japan, China and other Asian countries will be older.

Governmental involvement and the promotion of job growth are also contributing to manufacturing expansion in the U.S. Recent policy initiatives, in conjunction with abundant natural resources, positions America to take advantage of the impending industrial and innovation revolution.

U.S. laws and the ability to protect and enforce intellectual property are key in offering companies safety in producing products. This is a major hurdle in dealing with Chinese manufacturers where legal protection is inconsistent.

Monetary fluctuations and available credit with interest rates at low levels assist U.S. firms in maintaining healthy balance sheets. As the dollar continues to depreciate against the Chinese Yuan, this will accelerate U.S. manufacturing and exporting of products which brings investment and wealth back into the country.

In the Treasure Coast region, there are nearly 8,100 individuals employed in manufacturing with average wages of $37,140 per year.

Current unemployment in manufacturing is 4 percent with Gross Regional Product representing $622,444,602 and regional exports in manufacturing reaching more than $1.5 billion for the local economy.

A new age of manufacturing has arrived in conjunction with growing export opportunities for U.S. products. Companies that embrace new manufacturing technologies and innovations will succeed if positioned properly.